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The possibility of a takeover bid was made
easier yesterday when DIRECTV agreed to officially merge with
Malone's Liberty Entertainment by the end of the year. Liberty
has had a controlling stake in DIRECTV, but the merger
reduces Malone's stake in half, which makes an acquisition
easier, according to Bloomberg.
DIRECTV also this week announced that it has hired former Pepsi
executive Michael White to be its new CEO, a move that could
also signal a possible change in ownership.
And DIRECTV has said publicly that it's attempting to reduce
operational costs, which could be an effort to make itself more
attractive to a prospective buyer.
Swanni's Take:
Get ready for a deal. Malone is clearly pitting one telco
against the other in public in an effort to get both of them to
sweeten takeover offers. I would be surprised if either Verizon
or AT&T doesn't buy DIRECTV in the next six months.
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Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com
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